Supporting information - Modelling of inflation for proposed amended distribution roll forward model - version 2 - August 2016

On 31 August 2016 the AER released its proposed amendments to the distribution RFM.

In order to give effect to the Rate of return guideline and allow for an annual update for the return on debt, the AER has amended the distribution roll forward model under clause 6.5.1(c) of the National Electricity Rules (NER). The AER has also made amendments to allow for a forecast or actual depreciation approach to be used to roll forward the RAB.